A major youth employment drive backed by £1 billion will help create 200,000 jobs for young people, alongside the biggest transformation of apprenticeships in a decade
It comes as apprenticeships starts amongst young people are down 40 percent in the last decade, while figures from the Office for National Statistics (ONS) revealed that youth unemployment among 16-24-year-olds has surged to 16.1% – the highest level since early 2015.
The “New Deal” will deliver a wide-ranging package of support, including:
- A new Youth Jobs Grant, through which businesses will receive £3,000 for every young person they hire aged 18-24 who has been on UC and looking for work for six months. This is expected to support 60,000 young people over three years.
- Expansion of the Jobs Guarantee to a wider age range, from 18-21 to 18-24, to create more than 35,000 extra subsidised jobs. This brings the total to be supported through the scheme to over 90,000 in the next three years.
- An Apprenticeship Incentive of £2,000 for each new employee aged 16-24 taken on by an SME. As part of wider reforms, this will drive progress to the government’s target of creating 50,000 more apprenticeships.
- Further reforms to the Growth and Skills Levy to prioritise young apprentices, secure value for money and give school and college leavers more opportunities than ever to build careers in cutting edge industries.
It is the latest step in the Government’s commitment to ensuring every young person aged 16-24 has the opportunity to earn or learn.
These changes are backed by an additional £1bn, taking the total investment into the Youth Guarantee and the additional investment in the Growth and Skills Levy to £2.5 billion over the next three years.
This will support almost one million young people and help deliver up to 500,000 opportunities to earn and learn. This includes:
- 295,000 training and work experience opportunities
- 150,000 work experience
- 145,000 SWAPs (sector-based work academy programmes)
- 200,000 jobs and apprenticeship opportunities
- 50,000 apprenticeships
- 90,000 jobs guarantee jobs
- 60,000 hiring incentives
These changes are the biggest reforms to apprenticeships in a decade; for the first time, employers will have more flexibility to upskill their staff through seven new apprenticeship units aligned to Industrial Strategy priorities including artificial intelligence, engineering, clean energy and construction.
A press release from the government revealed that it will develop further Units informed by ongoing input from industry, to which the National Hair and Beauty Federation (NHBF) has announced it will engage with Skills England on future units relevant to hair and beauty.
The response from the industry
Caroline Larissey, chief executive of the NHBF, commented, “Hair and beauty is one of the most powerful vehicles we have for getting young people into skilled, fulfilling work. We welcome any policy that lowers the barrier for businesses to say yes to a young person who is ready to learn.
“The expanded Youth Guarantee, combined with incentives for smaller employers, is a step in the right direction and we look forward to working with Government to ensure our sector can access every benefit available.”
More responses on the new youth employment drive
Tina McKenzie MBE, Policy Chair of the Federation of Small Businesses, said, “This is a game-changer to tackle youth unemployment and inactivity, which FSB has campaigned about as levels remain stubbornly high after the pandemic.
“Creating good opportunities for young people is absolutely crucial – for individuals themselves, for small businesses and for local economies and people.
“The new incentives announced today are a clear and decisive step forward – helping small firms to hire those on Universal Credit and to create apprenticeships.
“It’s the right choice to prioritise public funding to back small employers in particular to provide apprenticeships for young people.
“The UK can’t afford a lost generation amid rising employment costs, therefore we’re pleased the Government has listened carefully on this and stepped up with this pro-jobs, pro-opportunities package.”
Meanwhile, Brian Dow, chief executive of Mental Health UK, said, “Many young people want to experience the positive impact on their mental health that secure employment provides, but have faced significant challenges finding work.
“Through our work with young people, we have also found that many feel they do not have the right skills or training to enter employment.
“We warmly welcome this announcement, which will support young people to be ready for work and help organisations large and small to capitalise on the skills, talents and enthusiasm that young people have to offer."
